White House talks on stablecoin yields, no agreement reached

The White House held its third closed-door meeting on February 19 with crypto advocates and banking groups to discuss stablecoin yield policies, with no agreement reached yet.

The session, which started at 9 a.m. ET, aimed to develop a framework balancing consumer protection and US competitiveness, according to participants.

Attendees included Ripple, the Blockchain Association, and major bank trade groups.

Sources indicated the White House intends to keep discussions ongoing until a deal is finalized.

During the meeting, proposals were discussed that would allow companies like Coinbase to offer rewards for certain activities, though details remain unclear.

The debate centers on whether stablecoin yields should be restricted, with banks advocating for broad bans and crypto firms warning such limits could hinder innovation.

The outcome of future negotiations will influence the progress of broader crypto legislation, including a bill in the Senate.

No additional meetings have been scheduled.

🔗 Source: The Block

🧠 Food for thought

Implications, context, and why it matters.

The White House is pushing banks toward a compromise on limited stablecoin rewards

In a closed-door meeting, the White House pressed bank trade groups to accept limits on stablecoin rewards 1.
The proposal separates rewards by type and use.
It would allow rewards tied to certain activities and transactions, while blocking payouts for simply holding stablecoins in a deposit-like way 1.
Banking groups have called for a complete ban on stablecoin rewards 2.
Crypto advocates say activity-based rewards support liquidity in decentralized finance (DeFi), blockchain-based financial services that can operate without traditional banks. They warn a ban could disrupt the ecosystem 3.

This debate could shape who controls dollar liquidity in digital markets

These talks could affect more than exchange programs at firms such as Coinbase. They may also decide who manages U.S. dollar flows in digital markets 4.
Tight rules could push stablecoin issuers (companies that create tokens designed to track a currency like the U.S. dollar) and developers toward clearer regimes such as the EU or UAE 4.
That shift could weaken U.S. oversight and reduce the dollar’s role in the global digital economy 4.
For crypto firms, stablecoin income helps offset reliance on volatile trading fees.
Talos estimates Coinbase earned about $367 million in stablecoin interest income tied to USDC in Q4 2025 5.